All Forum Posts by: Alyssa Patterson

I’ll keep trying to justify doing this, until I see there is bigger reason for me not to. If that makes sense. Lol I have a lender willing to work with me, I have a cash flowing business if I need to come out of pocket. I’m using this method to build wealth over time, into my retirement potentially. Don’t you think that reward out weighs the risk of not profiting right away or having to put some more money in out of pocket. Like those are petty risks to me when I’m looking at the bigger picture. Do I sound crazy? Am I too optimistic?

It will totally make sense - depending on how you structure things and work out your potential deals. Think Long Term rather than short term as RE Investing is usually a longer-term deal to profit from. I would highly recommend that you talk to your lender and ask about a 203K loan which includes Money for renovations, WITHOUT having to go the hard money route. You can do this loan with a 4- unit property too, which is good because you need to live in one unit for 2 years. BUT - if the tenants are paying your mortgage - or MORE - and the cost of the renovations is in your 30-yr. loan - you will do well with the property and likely the equity in it within 1 year, definitely 2. The main thing is that you have a property which is gaining equity and appreciation, ideally, PLUS giving you some cash flow, AND you get to live for free while you look for other deals and places where you can put your money

I like that idea, thank you Julie

0 Votes

Denver, Colorado

Even if I ran you the numbers, don’t the risks still exist. I have a contractor who renovated my friends condo in boulder who we trust, and I have already seen his work. I think I have all the info I need for now thanks everyone.

1 Vote

Denver, Colorado

Thank you jay for the clear response

0 Votes

Denver, Colorado

How will I know if I’m ready for this? Because I feel ready, I have a loaner for the property and renovation, for 15k down, he said if have any questions along the process he can help me, if we end up doing business together. I’m using all the recourses at my disposal to learn the process. I feel like I asked a lot of questions for being on here for two days. I feel like I’m being rather proactive, forgive me if I’m wrong.

0 Votes

Denver, Colorado

I’m not worried about losing the 20k, as I said I’m new, I’m trying to get the information before go forward with the decision. This isn’t my life savings, it’s not all the money to my name, I’m not seeing why I shouldn’t try if I have tho opportunity, I can make the money back in 3 months if I lose it. Should I learn more about the process before I go into it? Is that what your saying? If your saying I don’t know enough. instead of giving up on the idea entirely, wouldn’t you agree saving up more money and getting a mentor before starting would be a more useful suggestion?

1 Vote

Denver, Colorado

I have been self employed for 10 years have proof of income and pay I’m up taxes. I am trying to buy a house with a hard money loan I already got an offer with 15k down for single family property for going less than 30% market value. I have the offer for a loan to buy the house and for renovations, he said if I found the property he will wire me the money immediately. Should I do this? It was the first person I inquired about the loan. Should I wait for more options?

0 Votes

Denver, Colorado

Quote from @Andrew Syrios:

The BRRRR method involves buying 25% under market or at least close to that. So it's pretty low risk by definition. The challenge is finding such deals, particularly in this market.

Thankyou for the clear response

0 Votes

Denver, Colorado

Quote from @Michael Deering:

Yes it is. 20k is closer to a rehab cost. Partner with a buyer and offer the 20k to rehab and take profits accordingly.

That’s a really good idea. Should I just post an add on Craigslist? How would I go about finding someone

0 Votes

Denver, Colorado

Quote from @Jaron Walling:

@Alyssa Patterson I feel your pain here. I was in a similar situation 4 years ago before I purchased my first property. Renting was killing me financially. I was broke 10 mins after every paycheck.

I used the house/hack, BRRRR strategy on my first deal but it's nearly impossible do it again in my neighborhood 2022. With rising interest rates the BRRRR strategy isn't as affective as it once was.

Denver, CO + $20k doesn't compute. I'd focus on house/hacking opportunities and cutting HOUSING EXPENSES as much as possible. You won't live for free but you'll be in the game and collecting rent instead of paying rent to someone else. Appreciation is a bonus but never certain. Nobody predicted the wild ride of the last few years. Safe to assume nobody will predict the next few (accurately).

I don’t like pay check to pay check. I own a massage business and make 10-12k a month but I use my apartment as an office so I don’t want to have clients coming to a property under construction. I’m able to save 5k a month. I have someone willing to loan me the money for the flip and property.

0 Votes

Denver, Colorado

All Forum Posts by: Alyssa Patterson

Alyssa Patterson has started 2 posts and replied 17 times.

Post: Are Tax Returns Required To Get Short Term Rental License

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?